Instant Asset Write-Off Calculator
Work out your immediate deduction, tax saving and the real net cost of a business asset under the $20,000 instant asset write-off. Enter the asset price, business-use percentage and your company tax rate to see the result instantly.
Your Asset Details
Cost of the asset excluding GST (if registered for GST)
You can only deduct the business-use portion
Sole traders: your marginal tax rate applies instead
$20,000 per-asset threshold applies in both years
Eligible for the instant asset write-off
Asset costs less than $20,000.00 (GST-exclusive), FY 2025-26
You can deduct the full business-use portion of this asset in the year it is first used or installed ready for use, instead of depreciating it over several years.
Estimates for informational purposes only. Assumes aggregated turnover under $10 million and the asset is first used or installed ready for use within the selected income year. The threshold applies per asset and is GST-exclusive for GST-registered businesses. Confirm the current legislated threshold with the ATO — not tax advice; consult a registered tax agent.
What is the Instant Asset Write-Off?
The instant asset write-off lets eligible small businesses immediately deduct the full business-use cost of a depreciating asset in the year it is first used or installed ready for use, rather than spreading the deduction over the asset's effective life. For the 2024–25 income year the threshold is $20,000 per asset for businesses with an aggregated annual turnover of less than $10 million that use the simplified depreciation rules. Because the threshold applies per asset, a business can write off several assets in the same year — for example a $12,000 ute canopy, a $6,000 laptop fleet and a $15,000 coffee machine could all be immediately deducted. Typical eligible assets include tools and machinery, vehicles under the threshold, office furniture, computers and phones, and shop or café fit-out equipment.
How the Deduction and Tax Saving Work
| Step | Formula | $15,000 asset, 100% business, 25% rate |
|---|---|---|
| Deductible amount | Asset price × business-use % | $15,000 |
| Tax saving | Deductible amount × company tax rate | $3,750 |
| Net cost of asset | Asset price − tax saving | $11,250 |
The deduction reduces your taxable income, so the cash benefit equals the deduction multiplied by your tax rate — 25% for most small companies (base rate entities) or 30% for standard-rate companies. Sole traders and partners claim the deduction against their personal income, so their marginal tax rate applies instead; check yours with our income tax calculator. Remember the write-off is a timing benefit: you are bringing forward a deduction you would otherwise claim gradually through depreciation, which improves cash flow in the purchase year.
Assets Over the Threshold: The Small Business Pool
If an asset costs $20,000 or more it cannot be immediately written off. Instead it goes into the small business simplified depreciation pool, where it is deducted at 15% in the first income year and 30% of the remaining balance in each later year. If the pool's closing balance falls below the instant asset write-off threshold at the end of an income year, the entire remaining balance can be deducted at once. The eligibility test is on the asset's full cost (GST-exclusive if you are registered for GST) even when it is partly used privately — but you can only ever deduct the business-use portion. Deciding between a company structure and sole trading affects which rate applies to your saving; compare with our sole trader vs company calculator, and if a large purchase creates a tax debt, our ATO payment plan calculator can help you plan repayments.
Frequently Asked Questions
What is the instant asset write-off?+
A tax concession that lets eligible small businesses immediately deduct the full business-use cost of an asset in the year it is first used or installed ready for use, instead of depreciating it over several years.
What is the threshold for 2024-25?+
$20,000 per asset (GST-exclusive if GST-registered) for businesses with aggregated turnover under $10 million. The asset must cost less than $20,000 and be first used or installed ready for use during the income year.
Does the $20,000 apply per asset or in total?+
Per asset — a small business can immediately write off multiple assets in the same year, as long as each one individually costs less than $20,000.
What if my asset costs $20,000 or more?+
It goes into the small business depreciation pool: 15% deduction in the first year, then 30% of the remaining balance each later year. If the pool balance drops below the threshold at year end, the whole balance is written off.
Can I claim an asset I also use privately?+
Yes, but only the business-use portion is deductible — a $10,000 asset used 60% for business gives a $6,000 deduction. Eligibility is tested on the full asset cost.